Tencent Music Entertainment (1698.HK) reported stronger-than-expected second-quarter results on Tuesday, with revenue rising nearly 18% year-on-year to 8.44 billion yuan ($1.17 billion), surpassing analysts’ forecasts of 7.96 billion yuan. Shares of the U.S.-listed company jumped 6.6% in pre-market trading.
The growth was driven by an expanded content portfolio, including podcasts, audiobooks, and new music tie-ups that boosted user engagement and subscriber numbers. Tencent Music’s Super VIP program — which offers bundled services like high-quality audio, online karaoke, and exclusive events — has grown to around 15 million subscribers.
The company also expanded partnerships with global and domestic labels, striking first-time agreements with The Black Label and H MUSIC to tap into rising K-pop demand, while continuing collaborations with Chinese artists such as Wang Feng.
Revenue from music subscriptions climbed 17.1% to 4.38 billion yuan, offsetting an 8.5% decline in social entertainment services, which fell to 1.59 billion yuan. Tencent Music’s adjusted earnings reached 1.66 yuan per American Depository Share, beating expectations of 1.46 yuan.
In June, Tencent Music announced a $2.4 billion cash-and-stock deal to acquire Chinese audio platform Ximalaya, further strengthening its catalog and targeting deeper market penetration. Analysts at CFRA Research noted that product innovation, content diversification, and AI-driven personalization would likely support Tencent Music’s sustained growth trajectory.